Subscribe for Daily Updates!
If a shareholder is in default and has been put on notice, are they allowed to attend a special shareholder meeting called for the purpopses of voting on amendments to prop lease? What about if they have been evicted and are in the process of appealling it? Seems they should not have voting rights if they are already in default of prop lease or being terminated. Our prop lease doesn't address this.
No wording such as "in good standing"?
Yes, by laws state "in good standing"-does that imply arrears and violations render the errant shareholder ineligible to vote?
generally means current with maintenance, no arrears whatsoever, no House Rules violations, etc.
Check with your Board; if you're on the Board and are the liaison with the co-op attorney, check with him/her.
My friends
The coop first and foremost is a corporation.
Thus, corporate bylaws prevail at all times. Yes, there may be case law that overrides some by-laws, but this is not a frivolous undertaking. Always have the co-op’s attorney provide guidance as self interpretation can lead to chaos and pain.
Unless specifically defined in the co-op’s by-laws, one is spawning a firestorm, if it is determined that the board of directors was arbitrary and capricious. In my view, the bylaws must explicitly state that a shareholder in default and duly notified cannot vote in one or more procedures, else one is seeking trouble.
Introduce yourself to other members of Board Talk! Log in below or register here.
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.
Check your By-Laws. Typically, "each shareholder" gets to vote, regardless of being in default on the lease (Article II, Section 5 in our By-Laws).
If you're in the midst of canceling someone's shares and lease due to default and have already gotten at least one court to rule in your favor, it's murkier. Ask your attorney.
Thank you for rating!
You have already rated this page, you can only rate it once!
Your rating has been changed, thanks for rating!
Board Talk members who registered prior to March 9th, 2016 will need to reset their password.